LNG will initially fund nearly $7.5m to immediately drill, core and test a 3,200m exploration well on the A-Lovech exploration license in Bulgaria targeting the Middle Jurassic Etropole shale formation.
LNG previously advanced $1.5m of this $7.5m payment which was paid to TransAtlantic Petroleum, a parent company of as a non-refundable deposit in respect of the transaction.
As required in Bulgaria, on a successful result from this well, TransAtlantic’s subsidiary, Direct Petroleum Bulgaria EOOD, will apply to the government of Bulgaria for a production concession (the Etropole Concession).
The Etropole Concession is expected to cover an area up to 1,640sq km for a term of up to 35 years.
In return, and subject to Bulgarian government approval, LNG Bulgaria will acquire a 50% undivided stake in the Etropole Concession.
